Mobile app advertising platform AppLovin (NASDAQ: APP) will be reporting results tomorrow after market close. Here’s what to expect.
AppLovin beat analysts’ revenue expectations by 6% last quarter, reporting revenues of $1.20 billion, up 38.6% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is AppLovin a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AppLovin’s revenue to grow 32.5% year on year to $1.26 billion, slowing from the 35.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.79 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AppLovin has missed Wall Street’s revenue estimates three times over the last two years.
Looking at AppLovin’s peers in the sales and marketing software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. LiveRamp delivered year-on-year revenue growth of 12.4%, beating analysts’ expectations by 1.7%, and Shopify reported revenues up 31.2%, topping estimates by 3%. LiveRamp traded up 2.7% following the results.
Read our full analysis of LiveRamp’s results here and Shopify’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 11.4% on average over the last month. AppLovin is up 21.2% during the same time and is heading into earnings with an average analyst price target of $374.10 (compared to the current share price of $386.50).
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